The Continuing Vigil

The authors present the main findings and recommendations from a recent report by the US National Research Council’s Transportation Research Board (TRB) on the status of competition in the US airline industry. The Congressionally requested study, conducted by an 11-member expert committee, was prompted by concerns over alleged unfair exclusionary, or predatory, conduct in the US airline industry and a subsequent proposal by the US Department of Transportation to use regulatory-like procedures to detect and prohibit suspect behaviour. Although committee members differed in their views on DOT’s enforcement role, they unanimously urged aviation policymakers to take more positive steps to foster competition and entry in airline markets, including the introduction of market-oriented methods for providing and regulating the use of airport and airway capacity and to undertake more thorough reviews of proposed airline alliances and other partnerships.